Eastmain Resources Inc. Announces Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2011) -

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Eastmain Resources Inc. ("Eastmain") (TSX:ER) is pleased to announce that it has entered into an agreement with a syndicate of investment dealers, led by Oberon Capital Corporation and including Macquarie Capital Markets Canada Ltd, Casimir Capital Ltd, and Stonecap Securities Inc. (the "Agents") to complete a $5.0 million private placement offering of 2,272,727 flow through common shares at a price of $2.20 per share (the "Offering"). The share price of this Offering represents a premium of approximately 60% to today's closing price of Eastmain's common shares.

Prior to closing, the Agents will have the option to increase proceeds raised under the Offering by up to an additional $2.5 million to raise gross proceeds of up to $7.5 million.

Eastmain has agreed to pay a fee equal to 6% of the gross proceeds of the Offering to the Agents and issue broker warrants entitling the Agents to acquire such number of common shares of Eastmain as is equal to 6% of the aggregate number of flow through shares sold in the Offering. The broker warrants shall be issued at a price of $1.40 per share and will be exercisable for a period of 18 months following the closing of the Offering.

The Offering is scheduled to close on or about November 30, 2011 and is subject to the approval of the Toronto Stock Exchange.

Proceeds from this placement will be used to accelerate exploration of new discoveries at Eastmain's Clearwater Project.

About Eastmain Resources Inc. (TSX:ER)

Eastmain is a Canadian gold exploration company with 100% interest in the Eau Claire and Eastmain gold deposits. Eastmain has $17.6 million in working capital as at July 31, 2011 and holds an interest in 12 projects within the James Bay District, including the Éléonore South property, where a gold discovery has been found in a similar geologic setting to Goldcorp's Roberto deposit.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals and the availability of financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.